At a Glance
|Strategic Outcomes||SO3 Increased access to sustainable services|
|Start Date||Q1 1 January 2020|
|End Date||q4 31 December 2021|
|Actual Budget (USD)||998,258|
|Actual Expenditure (USD)|
|GGGI Share (USD)||0|
|Poverty and Gender Policy Markers||poverty, gender|
|Name of Client (Lead/Prime implementer if GGGI is part of a consortium)||Government of Indonesia: National Designated Authority (NDA) - Fiscal Policy Agency of the Ministry of Finance|
|Participating Organization (Funding/donor)||Green Climate Fund (GCF)|
|Name of consortium members, if any||N/A|
GGGI Project Code : ID06
Project Manager and Staff +
Indonesia has received Readiness and Preparatory Support grants for the Green Climate Fund (GCF) since June 2018 to enhance country ownership and access to the fund. GGGI is the Readiness Delivery Partner for the GCF National Designated Authority (NDA), namely the Ministry of Finance, Fiscal Policy Agency. The first Readiness project, which ended in December 2020, has increased Indonesia’s ownership and capacity to access the GCF financing. The Outputs include the establishment of the No-Objection Letter (NOL) procedure of the NDA, development of the NDA’s communication strategy and operational guidelines, and identifying potential DAE candidates as well as potential concept notes to be submitted to the GCF through a public Call.
Following up the satisfactory result of first Readiness, the second Readiness project started in January 2020 aims to address further barriers and gaps to mobilize international climate finance and private sector investments. The second Readiness project includes activities aimed to deliver tangible results that match the four GCF readiness outcomes:
• An institutional coordination mechanism is in place to coordinate climate finance focal points. This workstream supports the NDA to establish this coordination mechanism between climate finance focal points.
• Stakeholder engagement increased to support country programming. This workstream supports the NDA in mainstreaming the gender aspect into climate change projects/programs based on guidelines developed under the current Readiness project. Activities in this workstream also include periodical strategic meetings with Accredited Entities, government ministries and agencies, as well as NGOs and CSOs.
• Direct access realized. This Readiness grant provides assistance to Direct Access Entities – DAEs (PT Sarana Multi Infrastruktur and Kemitraan) and nominated DAEs (PT Indonesia Infrastructure Finance, Bank Artha Graha and Kehati).
• Climate finance mobilized. This workstream supports developing a climate change fiscal policy framework. The activities in this workstream also include executing the full series of 2nd Call for Project Concept Notes, including execution, capacity building series, matchmaking process with the Accredited Entities, and concept note writing support. In addition, this workstream will continue support of concept notes submitted to the NDA following the first call for Project Concept Notes together with relevant ministries and other stakeholders.
 There are several international climate finance sources as well as national climate financing windows in Indonesia, which each may have different entities that manage the funding, or the focal points. Currently, there are Ministry of Finance (MoF) as the National Designated Authority (NDA) of Green Climate Fund (GCF), Ministry of Environment and Forestry (MoEF) as both the focal point of Global Environment Facility and Adaptation Fund, for international climate finance focal points. Moreover, existing national climate financing windows and entities include the Ministry of National Development Planning (PPN/Bappenas) for Indonesia Climate Change Trust Fund (ICCTF), PT Sarana Multi Infrastruktur (PT SMI) for SDG Indonesia One, and the most recently established Environmental Fund Management Agency (BPDLH) which is planned to manage several different sources of climate financing and will operate under the Directorate General of Treasury, Ministry of Finance.
Increased readiness of relevant stakeholders in accessing international climate finance, especially in regard to GCF mechanism, while increasing the climate finance mobilization through development of climate project pipeline.